“Buying a government stock means lending money to the state.”
Usage Entry 1112 / 1350 60-second read
Stock vs. Bond
Equity (partial ownership) versus debt (a loan you're owed).
The comparisoni
“Buying a government bond means lending money to the state; a stock is ownership in a company.”
The ruleii
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STOCK = ownership. BOND = loan.
A STOCK (or share) is a small piece of ownership in a company — investors profit when the company does well. A BOND is a loan — the issuer pays the bondholder fixed interest and repays the principal at maturity.
Memory aidiii
Remember it like this
Stock = share of the company. Bond = loan to them.